Innophos Holdings (IPHS) Tops Q3 EPS by 6c, Beats on Revenues; Boosts FY17 Sales Guidance

Innophos Holdings (NASDAQ: IPHS) reported Q3 EPS of $0.78, $0.06 better than the analyst estimate of $0.72. Revenue for the quarter came in at $184 million versus the consensus estimate of $181.75 million.

Full Year 2017 Outlook

The Company increased its full year 2017 sales guidance, and maintained its adjusted EBITDA. Both are forecasted to be broadly in line with prior year.

2017 guidance reflects the contributions from Novel Ingredients in both Q3 and Q4 with estimated sales of $35 million.

Q4 is expected to reflect typical seasonality with lower sequential sales and unfavorable mix.

Demand impact from the recent natural disasters is expected to carry into Q4 and forecasted to have an unfavorable $3 million effect on sales for the full year.

An estimated $3 million of Phase 2 Operational Excellence savings will take effect in 2017, $2 million of which will be recorded in Q4. Near term logistics savings are being impacted by lack of trucking equipment availability following recent hurricanes.

The Company is planning a manufacturing stoppage in Q4 as a first step in a broader plant maintenance and supply chain optimization program that will be phased throughout 2018, demonstrating our continued commitment to our phosphates product portfolio. This stoppage will impact earnings adversely by approximately $4 million due to maintenance expense, lower fixed costs absorption and higher cost of externally sourced material.

Q4 2017 is forecasted to show double-digit sales and adjusted EBITDA growth versus prior year.

For earnings history and earnings-related data on Innophos Holdings (IPHS) click here.

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